Shares of SinglePoint Inc. (CBOE: SING) surged 26% to close the post-holiday week at $2.14. The jump is likely in reaction to a bullish report from Jefferies analyst Dushyant Ailani highlighting value-based investment opportunities in the renewable energy sector, including in First Solar, Inc. (NASDAQ: FSLR), Enphase Energy, Inc. (NASDAQ: ENPH), and Sunrun Inc. (NASDAQ: RUN), which earned bullish ratings and whose potentials contribute to his optimistic thesis. And he isn't the only analyst expecting the sector's return to investor glory.
Other analysts are modeling for a sector rebound, including Mark Jarvi at CIBC Capital Markets, who believes 2024 could deliver a reversal to the downward spiral in clean energy stocks since 2021, a sentiment supported by lower rates/yields, which he believes could have a qualitative and quantitative benefit on the sector. Perhaps the better news for those wanting exposure to the space is that both analysts, among others, may be right, especially on the heels of the COP28 plan, which now has 197 countries pledging to contribute to tripling the world's use of clean power, with much of that intent in progress.
Of course, that's more than good news for the world; it can also be for the companies positioned to provide precisely the types of products and services needed to reach the aggressive mandates within the plan. CBOE-listed SinglePoint makes that list. And more important than being on it, SING looks ideally positioned to exploit a sweet spot of opportunity by leveraging its portfolio of renewable energy and energy-efficiency solutions and tapping into multiple near and long-term revenue-generating opportunities. In fact, turning ambition into progression, they already are.
TTM Revenues Exceeding $30 Million
SinglePoint, Inc.'s revenues exceeded $30 million in its trailing twelve months. More importantly, guidance suggests strengthening revenues and consistent quarter-over-quarter growth into the new year. That's not all. Newly listed to the CBOE exchange, which added liquidity to the stock and fresh capital to the balance sheet, SING looks better positioned than ever to deliver that expectation. Better still, the inaugural listing of U.S.-based SING to the CBOE BZX Exchange could make that happen sooner rather than later.
Wil Ralston, Chief Executive Officer of SinglePoint, thinks so. He said, "The chance to be the inaugural U.S. Company listed on the Cboe BZX Exchange marks a momentous and historic occasion. Our interactions with the Cboe team have been exceptional, characterized by their responsiveness, attention, and support. These qualities were pivotal in our decision to transition to the Cboe. This listing move is strategically sound, as we believe Cboe's international reach will help facilitate our expansion into other markets and support our acquisitions worldwide. This capability of Cboe is a significant step in implementing our global strategy and represents a watershed moment for our company. Achieving this historic milestone is truly remarkable, aligning perfectly with our long-standing ambition and focus."
It also enables SinglePoint to accelerate an aggressive acquisition strategy to expand its services capabilities and target significant market opportunities in the renewable solar energy production and storage sectors. It includes innovative indoor and outdoor solutions designed to provide customers better access to energy independence and control over their well-being. The even better news from an investor's perspective is that by providing its customers hands-on service from the point of sale to the final installation of any of its solar, clean air, and renewable energy solutions, revenues generated can fall faster to its bottom line.
SinglePoint Acquisitions Fuel Revenue Growth
That includes those from Boston Solar and Frontline Power Solutions, two acquired assets that are already contributing to SING's recent record-setting performances. However, more revenue-generating firepower may be added faster than many expect. In an update, SING management has reiterated its commitment and intent to acquire additional assets to strengthen its competitive position as a scaled provider of efficient renewable and clean energy solutions. Progress on that front could shift SING's pace of growth from hyper to warp. Even without planned acquisitions, the company's growth trajectory is impressive.
Revenues in Q1/2023 surged by 268%, reaching a record-setting $5.7 million. Moreover, that growth was met with a gross profit of $1.65 million, a double-digit percentage increase on a comparative quarterly basis. Increases in year-over-year revenue are equally impressive, soaring by 40% to 24.7M in 2022 compared to the prior year. In other words, the recent weakness in SING's share price contradicts operating performance. Plenty supports that appraisal, including owned assets' intrinsic and inherent value.
For example, Boston Solar provides a fast track for SING to capitalize on Boston Solar's regional strength as a premier solar installation company in the New England area. Calling them premier is no exaggeration. Boston Solar has earned numerous accolades showcasing its achievements, including the 2020 Guildmaster Award from GuildQuality for outstanding customer service in the residential construction industry, being recognized by Solar Power World magazine for five years running as a Top Solar Contractor, and earning recognition on the Boston Business Journal's list of "Largest Clean Energy Companies in Massachusetts." Those recognitions likely gave the Boston Redsox the confidence they needed to partner with the company, leading to installing a solar system at the new MGM Music Hall at Fenway Park.
A Growing Arsenal of Clean Energy Products and Solutions
SING's acquisition of Frontline Power Solutions also expedites the company to grow bigger faster. Operating in deregulated markets, Frontline Power Solutions is licensed in 12 states, providing Energy Supply Agreements to commercial, industrial, and institutional properties of all sizes. They also offer advisory services for clients wanting to reduce energy consumption, optimize energy portfolios, and explore cost-saving alternatives. This strategic acquisition is a win-win deal, providing SinglePoint access to an extensive client portfolio and giving Frontline a supportive pathway to capitalize on a $9 billion revenue-generating opportunity from the 26 U.S. states that offer deregulated power options. Additionally, with the combination allowing economies of scale, capitalizing on monetization opportunities can and should happen more efficiently.
From a valuation standpoint, partnerships and acquisitions like these can have a meaningful near-term impact on growth. As important, they facilitate SinglePoint's plan to expand its brand presence nationwide, serving as the foundation to reach a pivotal milestone of providing specialized services in all 50 states. By actively working to cure market fragmentation through roll-ups and consolidations that immediately scale its operations, that goal may be scored faster than even the staunchest SING bulls expect. If so, SING will target solar market sales across the U.S., forecasted to reach $223 billion by 2026. And keep this in mind- with the Inflation Reduction Act extending tax credits, subsidies, and incentives for at least ten more years, earning a small percentage of that opportunity can be worth tens, even hundreds, of millions in new revenues for SinglePoint products and services. While an enormous market, providing solar solutions is just one of many opportunities targeted.
SinglePoint is also establishing itself as a front-runner in high-efficiency air purification technology, already providing scientifically validated air purifiers that meet the requirements set by the Department of Education (DOE). These purifiers utilize certified HEPA filters and adhere to the standards of the Food and Drug Administration (FDA) and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE). It's no small market opportunity: according to Market Insights, the air purifier market is already worth $2.3 billion. Moreover, with a forecast CAGR of 10.8%, the opportunity becomes a $2.9 billion one by 2025 and surges to $4.8 billion by 2030.
A Sum Of Its Parts Value Proposition
Thus, the sum of SING's parts exposes a value proposition that may be too attractive to ignore. And after post-uplist weakness, that case is more potent. Remember, instead of valuing SING for doing one thing well, typically the norm in its sector, appreciate them for doing many. In revenue terms, that matters. More importantly, it separates SING competitively by creating revenue streams beyond solar and energy storage, including those expected from providing cleaner air, energy-efficient appliances, and hygienic, safe buildings. Those, too, present billion-dollar potential.
That's not all. Through acquisitions, SING is also accruing value for itself and its investors by "modernizing" solar and energy storage models, capitalizing on air purification market opportunities, and developing ways to charge electric vehicles more efficiently. Those three targets alone present a clear path toward bottom-line profitability. However, evaluating the SING investment proposition must also include a forward-looking perspective. In that respect, current share prices may be as ground floor as they come.
After all, while it already has competitive advantages, SING continues to add the right pieces to make its standing more prominent in serving a global clean energy initiative. Considering the trillions of dollars dedicated to making sure that green energy initiatives become the norm, not the exception, that accretive value won't stay underappreciated for long. It shouldn't. By doing the right things in the right markets at the right time, SinglePoint fundamentals alone could clear a path of least resistance higher. And with more income-producing firepower being added, more likely than not, appreciably so.
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